Bankruptcy Laws in the Philippines ~ Pinoy Reviews

Bringing Filipinos news, reviews, and resources about the rest of the world.

Thursday, November 6, 2008

Bankruptcy Laws in the Philippines

The Insolvency Law of the Philippines is probably the most oudated statute the country has. It's the same law that has been passed in the 1930's and considering the current times, it should be revised. The Philippine Insolvency Law was copied from the old United States Bankruptcy Law and since the US had already changed their bankruptcy laws, I think it's time that we change ours. I'm sure a lot of unscrupulous companies file bankruptcy in order to evade payment to their creditors and employees.

The new bankruptcy law in the US covers two situations, one is for consumer bankruptcy applications or the personal bankruptcy law and the other for corporations. The US' bankruptcy laws has stricter standards and it would be hard for companies to use this law to evade payment of their obligations.

I think we should pattern any new insolvency law after the US' current bankruptcy laws and provide for a few changes to suit our situation. I'm sure there are a lot of good Congressman who can do the job, I mean, this representative from Cebu actually noticed how outdated our bankruptcy laws are.